Not-for-profit But yes-for-what continues… and today I will start to review the solution!

My post that dealt with the lack of measurement in success terms has led some enlightening comments from my colleagues and past managers, so I have decided to dedicate my coming posts to research this field and dig a bit more. It should be noted that I have done some research in the past, and sort of consider myself as someone who gained some knowledge re SROI or other impact measurement efforts, however insufficient and this is why I find it imperative to research now.
Another note before we dive-in… I plan to write a series of posts in this topic. Firstly, I would like to cover some methodology, i.e. set some conditions for my research. Secondly – review existing solutions in respect to the methodology. Finally, I hope to come to conclusion with the most relevant tools or suggestions for the future.
Ready to think?! Let’s do it!

The first and above all is the question WHY do we need to measure impact in social projects? It is indeed a vital and important question, and… I have a very good answer in my pocket. A very smart senior executive and philanthropist, emailed me the following statement, based on his extensive experience with foundations: about 85% of the funding in social projects is going lost without achieving its goal. These are insane numbers my friends. A simple math will reveal a bare truth. In the US itself ~333.5 billion dollars were donated in 2013. However, based on the above, we can cut out about $300 billion. I stop here, because it hurts to think in global terms (not to mention the lovely governmental “match”).
I am sure most of you already know that there is a critical issue with funding-impact ratio, and this statement is just the straw to break the camel’s back. It was for me, anyway, and as a consequence I have decided to write a wake-up and start thinking post. 

Are you ready to think with me?! I suggest you to comment here or by email, and I promise to integrate your thoughts and credit you in my next posts. I honestly believe that we can work together in order to achieve this goal, as we all have one mission – to find a decent solution. But! we cannot accept every solution. I have developed several criteria in order to consider a route to be a solution, and you are welcome to add more or suggest adjustments:

1. Usefulness
To what extent can we use the measures in day-to-day management? and by this I talk about  the dual role of metrics. I hold this opinion for years, and every time I state it, people are looking at me if I had fallen from the moon. But I actually did not, as long as I recall I was born on earth (-:
So if I get back to the point – the dual role is enabling the use of metrics/measures by both sides, the foundation/funding body and the charity/organization alike. No more measurement for THEM, no more shortening of evaluation time and tools. You want it for your organization because YOU deserve to know what the hell is going on!
2014-09-28 11.22.05
The issue of usefulness hit me like crazy back in 2007, when I was working with senior managers in social services, whom their project was founded by a very large north-American federation. They did not want to measure, nor to learn – they already knew the true, thanks, but no need to measure at all. I asked them why they despise it so much, and they simply said – it is too much work for our overloaded staff, we have no spare time for collecting useless data… they added that they already know the ins and outs so well, so no evaluation or measurement will enlighten anything.
It hit me again when I read Jed Emerson’s post last week, especially here: “I recall a breakout session presentation by one of the world’s best known impact investment organizations—one that appears on everyone’s list of favorite impact funds—listening to a nuanced and well-considered presentation by their head of impact performance. Following the formal PowerPoint show that included impressive definitions, charts and data, the presenter was asked, “How do these impact metrics inform your work?” to which the presenter responded, “Oh—we don’t actually use these metrics in our work. We just need them to give our funders!” After everyone had a good laugh, he said, “No, no—I’m serious—we don’t use them at all!” Peals of continued laughter echoed…”
Things are about to get worse, my dear readers, not a long ago I met a very senior level manager who works for a wealthy foundation. It happened to be with some connection to one of the projects in which I have been involved in the past, so I was more than curious to learn how they used the data and metrics we sent then for review. Sorry to disappoint you – they did not. They donated the money and forgot about it, and the real hell is yet to come – they never use metrics for themselves, as a foundation… and you know what?! they are absolutely not alone. The same shock made me shake, back in 2011 when I realized that a billion dollar foundation NEVER measures impact, never tried to develop something useful, and moreover when I was trying to educate them I got the same feeling of Mars and Venus, Earth and Moon, whatever you name it, I bet you understand me.

If so, I conclude: we need something useful – something that people will want to use, need to use, and feel it’s helpful. And please twice, one for the giving side, one for the taking one. I would say that in this aspect we have to talk business, and learn from business cases how to measure ONCE and EFFICIENTLY for more than one stakeholder.

Ready To Think

2. Friendliness:
To what extent normative managers can use the measures in day-to-day management?
and by this I talk about managers who do not have extensive research background.
It reminds me one of my nonprofit job interviews (-: funny story actually, especially if you consider my very limited knowledge about this sector back then, and specifically the funding issue. The position was highly customer-faced, and dealt with measurement and evaluation in education and social services. The interviewers, there were two of them, asked me if I think that every social service manager or every school principal should use SPSS (yes, the statistical package). I was sure  they are kidding, but they did not, so I answered “of course NOT, they can use Excel which is much easy to adapt, use and learn”, and got the job.
I tell you this story, because I will never agree that managers need to be researchers. They certainly do not! they need to do their job, to manage! and metrics is just another great tool to facilitate decision making and performance measurement. Yes, it is an essential tool, one to be top prioritize for every manager in the nonprofit sector. Yet, I wonder how this vital tool will become friendly and suit every normative manager? I think we can again keep an eye on good business practices. We also may bear in mind that we want something simple, Excel based, and easy to collect data and interpret.
I have to warn you, I got together with enough organization that invested tons of money in IT solutions for their database, and sadly I can barely count the organizations that really USE this information. They often tend to forget about it, and when they tried to retrieve some data, it was always such a burden, and poor quality.

I would also like to add one more thing, I believe in short things. What do I mean? I never like the idea of tons of questions or gathering endless information, we are not conducting an academic study (NO we are not!), we have a mission to measure the impact. In order to do that we have to keep in mind that there are busy people who realistically cannot dedicate themselves to information gathering as their life mission, and therefore it has to be short and useful, not just short, not just useful. BOTH.

If I summarize my impressions and thoughts in this respect,  and would say that there is a vital need for a FRIENDLY and RELEVANT tool to measure nonprofits performance. I do not want to sound as criticizing some existing measures, but I feel they are too complicated, and may not be a good answer to address the friendliness need.

3. Standardization:  to what extent we can expect to use the same measurement for a wide range of projects?
I will leave this measure open for your comments, because I already, kind of, formatted this so firmly in my mind, and I feel too strict…

Hope you enjoyed the reading. Please comment, share and subscribe to my newsletter, I promise to make you think (-:

 Charity defense councilSource: Charity Defense Council

P.S. – A super-talented friend of mine who works in the industry and does a great job with impact an so on, read this post before published, and was quite amazed that I still insist to make efforts to spread these ideas. He said: “You have got to forget SROI and this, no one wants to learn, no one wants to know, they know everything. Even when I try to spoon feed them they won’t listen”. Well, I dedicate couple of songs to you, keep calm and continue doing your great job. Good times are just about to come (-:
Click here if you want to listen the songs. None of them fully expresses my purpose, but absolutely set the tone.

 

 

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